Sage Group PLC (LON:SGE) expects to shave off £15mln of profits after spinning off its Brazilian business for up to £10mln via an auction process.
The Geordie accounting software company will receive an initial £1mln from the sale, with further payments of up to £9mln deferred.
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But a non-cash loss of £15mln will be taken on completion of the disposal, of which £11m reflects the reclassification of foreign exchange losses on the income statement.
Sage said the disposal was part of its strategy to focus on subscription software solutions and its ‘Business Cloud’ business.
Last year the Brazilian arm generated revenue of £53mln and an operating profit of £2mln.
In November Sage agreed to sell its merchant payment service business to US Bancorp for £232mln.